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MakerDAO rebranded to Sky in August 2024, launching USDS as its flagship stablecoin with an estimated $21 billion supply in early 2026.
MakerDAO rebranded as Sky in August 2024, shifting its primary focus to a new stablecoin called USDS [1]. This move marks a significant evolution for the decentralized autonomous organization that originally launched the DAI stablecoin in 2017 to provide a crypto-backed alternative to fiat-pegged tokens [1][3]. DAI is generated through overcollateralized loans, where users deposit assets like Ether into smart contracts to mint tokens, a process designed to maintain a value close to one US dollar [1][2].
The protocol relies on a system of collateralized debt positions that require users to maintain a specific collateralization ratio, typically between 110% and 200% [1]. If the value of the collateral drops, the contracts automatically sell assets to cover the debt, a mechanism that helps the system absorb market shocks [1]. Governance of these parameters rests with holders of the MKR token, who vote on changes to interest rates and accepted collateral types [1]. Interest paid on loans is used to buy and burn MKR tokens, a mechanism intended to make the governance asset deflationary [1].
The organization’s history includes internal conflicts over integrating with traditional finance, leading to the departure of its Chief Technology Officer in 2019 [1]. Founder Rune Christensen named the currency after the Chinese character for "to lend," reflecting the protocol's core function [1]. Sky estimates its ecosystem generated $611 million in gross revenue for 2025, with USDS reaching a supply of $21 billion by early 2026 [1]. This financial scale follows years of institutional adoption, including usage by Societe Generale and Huntington Valley Bank, as well as investments in US Treasuries [1].
Despite the rebrand, the original DAI token continues to trade at its intended $1 peg with a market capitalization of roughly $4.5 billion [3]. The system has historically weathered severe volatility, including a deleveraging spiral in March 2020 that briefly pushed the price to a historic high of $1.22 before it stabilized [1][3].
The transition to Sky raises questions about the long-term utility of the original DAI token as the ecosystem prioritizes the new USDS asset.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 16, 2026 · How we report
DAI is a stablecoin designed to stay close to one US dollar by using overcollateralized loans and smart contract controls.
Governance is performed by holders of the MKR token, who can propose and vote on changes to the system's parameters.
MakerDAO was rebranded as Sky in August 2024, and its flagship stablecoin USDS became a major stablecoin issuer by 2025.